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dc.contributor.authorStam, Eriken_US
dc.contributor.authorGarnsey, Elizabethen_US
dc.description.abstractThis paper explores and explains the emergence and growth of new firms in the knowledgeeconomy. The resource-based view, capabilities approach, and evolutionary economics are usedas a foundation for a developmental approach. The development of the firm is conceptualized interms of processes that include opportunity recognition, resource mobilization, resourcegeneration and resource accumulation, which lead to the development of competences and capitalin a base made up of productive, commercial and financial resources. Problems originating withinor outside the firm may deplete the productive, commercial and asset base, leading to turningpoints in the life course of these firms. These have negative consequences when problems are notsolved, but positive consequences when they lead to new solutions and the development of newcompetence.The empirical study shows that even in an elite sample of young fast-growing firms, most firmsface turning points in their life course, and thus do not grow in a continuous way. The studyshows that quantitative growth indicators do not always reveal growth problems that have beenfaced by new firms. Some problems do not negatively affect the employment growth of the firm,and other problems are solved before growth stagnates. The qualitative analysis shows that youngfirms are almost always in disequilibrium: there is almost never a perfect match between theconstituents of their resource base, between input resources and requirements for expansion. Thisexplains why continuous growth is so unlikely. Although every firm seems to grow in a uniquemanner, there is evidence for the presence of a limited set of necessary mechanisms for thegrowth of (new) firms, which work out in particular ways given the specific context and historyof these firms.en_US
dc.relation.ispartofseries|aPapers on economics & evolution |x0505en_US
dc.subject.keywordNew firmsen_US
dc.subject.keywordfirm growthen_US
dc.subject.keywordtheory of the firmen_US
dc.subject.keywordresource based viewen_US
dc.subject.keywordfirm life courseen_US
dc.subject.keywordorganizational crisesen_US
dc.subject.keywordknowledge economyen_US
dc.titleNew Firms Evolving in the Knowledge Economy; problems and solutions around turning pointsen_US
dc.typeWorking Paperen_US

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